CEZ Credit Rating Outlook Changed to Negative at Moody’s

By Ladka Bauerova -
May 13, 2013

Moody’s affirms CEZ’s A2 rating and
changes outlook to negative from stable, citing “ongoing
decline in the outlook for electricity generation in central
Europe,” according to a statement. Moody’s also says:
*Power prices won’t recover in “near-to-medium” term
CEZ “particularly exposed” to changes in power price because
its fleet is predominantly fixed-cost in nature
*Low power prices to weigh on CEZ’s financial profile from 2014
*CEZ’s capex, dividend to face more funding challenge from 2013
onwards:
*Change doesn’t factor in “additional risk” of investing in
new nuclear reactors